Answer:
option (C) $1,353
Explanation:
Annual dividend paid = $1.25
Increase in dividend annually, g = 2%
Number of stocks to be purchased = 100
Rate of return, r = 12%
Price at the end of Year 3 = 
here, n = 4 (after 3 years)
Price at the end of Year 3 = 
or
Price at the end of Year 3 = 
or
Price at the end of Year 3 = $13.53
Therefore,
Expected amount to be paid for 100 shares = $13.53 × 100 = $1,353
Hence,
the correct answer is option (C) $1,353
Answer:
-$5 million
Explanation:
In this question, we are asked to calculate the maximum change in banking system deposits as a result of a withdrawal.
mathematically;
change in checking deposits = Change in Reserves * 1/Reserve Requirement
From the question, the reserve requirement is 20% = 20/100 = 0.2
The change is thus -1 million * 1/0.2
-1 million * 5 = -$5 million
Answer:
are last in line to receive income.
Explanation:
Common stock holders are referred to as the owners of the company. They own shares that gives them the right to vote in a company's general meeting, receive dividends, and they have the right to get newly issued shares in the company before others.
However they are also called unsecured creditors of the company because when the business makes income they are the last in line to receive dividends if any remains.
Also in the case of bankruptcy preference share holders and other creditors are paid first. Common share holders are paid last.
Answer:
1/4
Explanation:
MPC = dC/dY
dC is the change in consumption
dY is the change in demand for goods and services.
MPC = 15/60 = 1/4
If allowance is made for crowding out, the new estimate will be larger.
